Family Owned Businesses
Enterprise Law Partners, PLLC helps family owned businesses become more potent competitors and operate more profitably.
Family owned businesses operate in a three-circle system:
Family businesses that successfully manage the interrelationship of these circles are tough competitors that survive for generations. Family businesses which cannot manage these interrelationships will fail.
ELP offers several programs that help family owned clients.
Counsel can review and/or draft Family Constitutions, Compensation Plans, Rules of Entry/Rules of Exit, and Succession Plans, all of which help families clarify and come to agreement on issues which can pose obstacles to the company's success.
Advisory Boards are particularly suited to family owned businesses. ELP can assemble a board of experts, including businessmen and family business counselors, that can help clear the air, creatively brainstorm solutions and energize the business.
One of our family owned business clients was stalled. The father looked at the business as his retirement, and saw himself as the "keeper of the wisdom." His son saw himself as the "young entrepreneur" willing to take risks in order to make his fortune through the family business. They could not agree on much and the business was suffering. ELP established an Advisory Board which met with the owners regularly. With the assistance of Board members, both father and son were able to get beyond, "I'm the father - do what I say" or "Your thinking is old-fashioned - do it my way." As a result of the open, frank discussions, the family was able to solve the current impasse and establish policies that will ensure its future business success.
How do you manage these interrelationships in your family business?